The Review examined the impacts of climate change on the Australian economy, and recommended medium to long-term policies and policy frameworks to improve the prospects for sustainable prosperity. Some observers have remarked that the Garnaut Review would be Australia's version of the Stern Review.[2] A number of forums were held around Australia to engage the public on various issues relating to the Review. The Secretariat to support the Review was based in the Victorian Department of Premier and Cabinet. The final report of the Garnaut Review was delivered on 30 September 2008.

The interim report of the Garnaut Review was released on 21 February 2008. The executive summary states:[3]

"Adaptation to climate change, energy efficiency and the distribution of the costs of climate change across households and regions are not considered in any detail in the report, but will be addressed in the final report."

"Australia’s interest lies in the world adopting a strong and effective position on climate change mitigation. This interest is driven by two realities of Australia’s position relative to other developed countries: our exceptional sensitivity to climate change: and our exceptional opportunity to do well in a world of effective global mitigation. Australia playing its full part in international efforts on climate change can have a positive effect on global outcomes. The direct effects of Australia’s emissions reduction efforts are of secondary importance."

Interim greenhouse gas emissions reduction targets for 2020 to be set in 2008 are supported in addition to targets for 2050. An emissions trading scheme (ETS) is also supported, but there is little discussion as to why it is preferred over a carbon tax. There seems to be support for the continued public funding of research into carbon capture and storage in spite of the failure of the FutureGen project in the US to maintain public funding.

The report indicated that in the absence of a global effort to reduce CO2 emissions, climate change would have severe adverse effects on Australian agriculture and on the natural environment. Irrigation in the Murray-Darling Basin would be severely affected, and in the most adverse scenarios, would cease altogether. Severe damage, and even destruction of the Great Barrier Reef is also a likely impact of rapid climate change.

The Garnaut report was released on 30 September 2008.[8] The report recommended that Australia push internationally for a carbon dioxide equivalent concentrations of 450 ppm, which would commit Australia to reductions of 25% on 2000 levels by 2020, and 90% by 2050. He also recommended that Australia have a fall-back position of 550 CO2 -e concentration, which would entail a 10% reduction in emissions by 2020, and an 80% reduction by 2050. He further recommended that, should all negotiations collapse at the Copenhagen summit, Australia should still reduce its emissions by 5% by 2020 on 2000 levels.

The report's key recommendation was to implement an emissions trading scheme. However, the report did not recommend free permits be granted to major polluters, or that transport sector be protected by special fossil fuel subsidies or tax excise cuts.

Emission reductions from the agriculture and forestry sectors were excluded from the final report.

Professor Garnaut said that the overall cost to the Australian economy of tackling climate change under both the 450ppm and 550ppm scenarios was manageable and in the order of 0.1-0.2 per cent of annual economic growth to 2020.

The report estimated mitigation costs for 450ppm at almost a percentage point more than 550pmm mitigation of the present value of GNP through the 21st century. The report stated that stronger mitigation is justified by insurance value and non-market value benefits in the 21st century and much larger benefits beyond, and that the costs of action are less than the costs of inaction.

Dr Clive Hamilton was heavily critical of the report, arguing that it reduced global expectations of what should be aimed for, naively exposed Australia's negotiating tactics to the international diplomatic sphere, alienates both the Australian public and the international community, misjudges the time frames necessary to avoid dangerous climate change, gives Australia numerous special deals, and would be rejected by the international community.[13]

Responses from political parties were mixed. Australian Greens leader Bob Brown suggested that the report demonstrated that reducing greenhouse gas emissions would not come at the expense of Australia's economic growth.[14] Climate Change Minister Penny Wong did not comment directly on the report but said that economic responsibility needed to be considered in responding to the report, and that the Government would wait for Treasury modelling on climate change mitigation before responding.[15]

Economist John Humphreys criticised the report, arguing that massively overstating the projected costs of global warming (about three times the estimate of the Stern Report), and argued that therefore the costs of action in fact exceed the costs of inaction. However, it must be recognised that the Stern Report relates the cost of dealing with climate change in the United Kingdom to the GDP of the United Kingdom, whilst the Garnaut report compares these aspects in Australia and so such a comparison is not necessarily apt. [16]

The following is a lecture presented by Ross Garnaut on August 25 2014 at the Melbourne Sustainable Society Institute, University of Melbourne. China took the world by surprise with its sustained, rapid…

The agreement between the United States and China to further limit carbon emissions up to 2030 has prompted calls for the Australian government to follow suit. The New York Times and others reports that US president Barack Obama and his Chinese ...

The author of the Garnaut Climate Change Review asked Federal Environment Minister Greg Hunt on Friday to consider moving to a flexible carbon price of 40 cents until other major economies develop their own schemes. Advertisement. Professor Garnaut ...

Following the 2007 election, the Government commissioned the Garnaut Climate Change Review – led by Professor Ross Garnaut – to conduct an independent study of the impacts of climate change on the Australian economy. Garnaut reported in June 2008 ...

His comments contradict the Garnaut Climate Change Review, which says Australia was the highest per capita emitter of greenhouse gas emissions in the OECD, even without exports of energy. "Australia's per capita greenhouse gas emissions are the ...

... most greenhouse gas emitting countries in the OECD”. Mr Hockey described this as “absolutely ridiculous”, even though the Garnaut Climate Change Review said that Australia was the highest per capita emitter of greenhouse gas emissions in the OECD.

He is the author of a number of influential reports to Government, including The Garnaut Climate Change Review and The Garnaut Review 2011: Australia and the Global Response to Climate Change. Video of Professor Ross Garnaut's speech is available ...

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